It's not really isometric; it's more like isometric rotated 45% counterclockwise. Once you get used to the look, it has the same benefits as isometric; you see the top, the side and the front of an object all in one view, and it lets you pack more detail into a small space. It was more widely used back in "the day," most famously by a few of the Ultima games, and later by Tibia (an old mmorpg which, interestingly enough, "borrowed" its graphics from ultima IV (I think it was IV, somewhere around there) at the start). Anyway, it's not a "real" perspective, in that you can't get it in real life, but once your brain adjusts to it it looks alright.
Anyway, @Andre: I like the head and neck on that dragon, but the rest of it really lacks detail. The back seems to be flat noise and his wings are pasted flat against his body. Think a bit about how he's put together. His back shouldn't just be flat; it's going to have muscles and a spine. The wings need to be moved back a bit (where do they connect to his body?) and they would probably look better if they were spread out. His legs, feet and tail also seem to lack detail; they look more like tubes than actual features.